Research On The Listed Companies’ Stock Ownership Incentive In China

The core objective of Stock Ownership Incentive is to resolve thecontradictions between shareholders and operators by aligning the interests of thoseand to stimulate operators to maximize shareholders’ wealth and social value.According to Modem Incentive Theory，Stock Ownership Incentive，as a kind ofeffective incentive system，is suitable for the modem enterprises’ development for along term. With regard to the experience in the West，enterprises can benefit a lotfrom the adoption of the system through generating new cap day.As far as the practice of Stock Ownership Incentive in China，the early exploresbegan in1990’s，but lack of correlative law and policy incurred，the incentive effectcan not arrive anticipation. In2005split share structure reform carried through，inaccording with administrative measures on Stock Ownership Incentive plan enacted.The listed companies’ enthusiasm to explore the incentive mechanism was ignitedagain in the better surroundings. This paper starts with the basic theory of StockOwnership Incentive，after making a brief introduction about the incentive practicalexperience of listed companies in America，and then analyzes the equity incentivepractice of listed companies in our country.With paying attention to the timeliness of Stock ownership Incentives，itanalyzes the practical situation of listed companies after the implementation of new“Company Law” and “Stock ownership Incentive management of listedcompanies”， with case analyzing and comparable study on some of therepresentatives of listed companies which carried out the Stock Ownership Incentive.Hoping to find out the strategy to choose the Stock Ownership Incentive modelwhich is suitable for different industries and different life-cycle businesses; Inaddition，the external environment of Stock Ownership Incentive and the problemsof its existence have also been analyzed，then given some recommendations，withhope to make some contributions to create a road for the further building a StockOwnership Incentive with Chinese characteristics.